|
|
Post by valueinvestor123 on Oct 1, 2017 11:24:28 GMT
One of the regulatory requirements is to have a process in place for an orderly process of unwinding loans in case a platform goes bust. Does anyone know what it might look like exactly should the unthinkable happen to Lendy? Has there been any precedent with any other platform similar to Lendy?
I have too much money on the platform not to think about it and the increasing default rates and lack of loans repaying make me worry. I don't mind so much the inability to sell on the secondary market but if the assets continue to be mis-valued, it will quickly snowball.
vi123
|
|
r00lish67
Member of DD Central
Posts: 2,691 
Likes: 4,048
|
Post by r00lish67 on Oct 1, 2017 11:37:16 GMT
One of the regulatory requirements is to have a process in place for an orderly process of unwinding loans in case a platform goes bust. Does anyone know what it might look like exactly should the unthinkable happen to Lendy? Has there been any precedent with any other platform similar to Lendy? I have too much money on the platform not to think about it and the increasing default rates and lack of loans repaying make me worry. I don't mind so much the inability to sell on the secondary market but if the assets continue to be mis-valued, it will quickly snowball. vi123 Lendy have covered this here: support.lendy.co.uk/hc/en-us/articles/115002020969-What-happens-to-my-investment-if-Lendy-goes-out-of-business-Yes, other platforms have gone bust, see here: p2pindependentforum.com/board/72/defunct-p2x-platformsIn terms of what it would look like, difficult to say. It would be entirely down to the backup service provider and the blend of any contractual restrictions and non-contractual practices they'd have in place. It'd probably get a bit messy with DFL's, and a way forward with other P2P firms would perhaps have to be found, if possible.
|
|
bababill
Member of DD Central
Posts: 525
Likes: 243
|
Post by bababill on Oct 1, 2017 11:50:00 GMT
You could also add Funding Knight to the list. If I recall correctly they went into admininistraion and were bought out by Sancus.
|
|
|
|
Post by valueinvestor123 on Oct 1, 2017 12:48:22 GMT
You could also add Funding Knight to the list. If I recall correctly they went into admininistraion and were bought out by Sancus. Yes, being bought up by another co would seem most likely. Although if there are industry-wide troubles, this would be less likely. Perhaps some asset vulture funds would buy loans, at deep discounts. will read up what happened to FK. What is Sancus doing with the loans? How much did investors lose?
|
|
bababill
Member of DD Central
Posts: 525
Likes: 243
|
Post by bababill on Oct 1, 2017 13:20:18 GMT
A lot of politics went on between the two parties. In one sentence Sancus (formerly GLI-f) was an investor in FK, they pulled the plug, FK went into admin and were bought out by Sancus. Heads rolled etc etc.
No lender lost money as a result.
|
|
Jeepers
Member of DD Central
Posts: 818
Likes: 721
|
Post by Jeepers on Oct 1, 2017 16:11:36 GMT
Profits are up 150% to £2.6m
The platform itself will not go bust. We might, they won’t. Is us taking the risk, not them.
|
|
|
|
Post by valueinvestor123 on Oct 1, 2017 16:29:49 GMT
Profits are up 150% to £2.6m The platform itself will not go bust. We might, they won’t. Is us taking the risk, not them. How did FK (and some others) get into trouble then?
|
|
Jeepers
Member of DD Central
Posts: 818
Likes: 721
|
Post by Jeepers on Oct 1, 2017 17:53:55 GMT
Profits are up 150% to £2.6m The platform itself will not go bust. We might, they won’t. Is us taking the risk, not them. How did FK (and some others) get into trouble then? I’m not familiar with those but I’m guessing they weren’t as established and profitable as Lendy.
|
|
|
|
Post by valueinvestor123 on Oct 1, 2017 18:11:16 GMT
How did FK (and some others) get into trouble then? I’m not familiar with those but I’m guessing they weren’t as established and profitable as Lendy. Where can I see how profitable a platform is? (Were you referring to Lendy that profits were up 150%?)
|
|
locutus
Member of DD Central
Posts: 1,059
Likes: 1,622
|
Post by locutus on Oct 1, 2017 18:39:27 GMT
|
|
nick
Member of DD Central
Posts: 1,055
Likes: 825
|
Post by nick on Oct 1, 2017 18:48:37 GMT
I’m not familiar with those but I’m guessing they weren’t as established and profitable as Lendy. Where can I see how profitable a platform is? (Were you referring to Lendy that profits were up 150%?) In their most recent new mail shot on Friday they state that their profit after tax was £2.7M for the year ended 31 Dec 2016 up from £1.0M in the prior year. Unlike most other platforms, Lendy has always been profitable since its inception in 2014 whilst also significantly growing its business. Their financials are due for filing at CH tomorrow. I think Lendy hit critical mass in transaction volume last year and I rate them one of the most solid platforms from a financial standing perspective. Obviously Lendy are going through a rough patch and need to strengthen their underwriting and their management and monitoring of development projects, but they already seem to acknowledge this and have the financial resources to staff up. Providing there aren't to many more train smashes such as Exeter and Isle of Wight, and investor confidence isn't completely destroyed, I think they will be one of a small number of platforms that will endure over the long term.
|
|
|
|
Post by martin44 on Oct 1, 2017 18:56:35 GMT
Where can I see how profitable a platform is? (Were you referring to Lendy that profits were up 150%?) Unlike most other platforms, Lendy has always been profitable since its inception in 2014 whilst also significantly growing its business. Their financials are due for filing at CH tomorrow. I think Lendy hit critical mass in transaction volume last year and I rate them one of the most solid platforms from a financial standing perspective. Obviously Lendy are going through a rough patch and need to strengthen their underwriting and management and monitoring development projects, but they already seem to acknowledge this and have the financial resources to staff up. Providing there aren't to many more train smashes such as Exeter and Isle of Wight, and investor confidence isn't completely destroyed, I think they will be one of a small number of platforms that will endure over the long term.
And only 8 weeks away from year ended 2017, not that we will know the results for some time, but still bated breath results, anyone care to guestimate.  Purely for fun of course, if we start making wild accusations Paul64 might feel the need to comment. 
|
|
nick
Member of DD Central
Posts: 1,055
Likes: 825
|
Post by nick on Oct 1, 2017 19:26:27 GMT
In their most recent new mail shot on Friday they state that their profit after tax was £2.7M for the year ended 31 Dec 2016 up from £1.0M in the prior year. Unlike most other platforms, Lendy has always been profitable since its inception in 2014 whilst also significantly growing its business. Their financials are due for filing at CH tomorrow. I think Lendy hit critical mass in transaction volume last year and I rate them one of the most solid platforms from a financial standing perspective. Obviously Lendy are going through a rough patch and need to strengthen their underwriting and management and monitoring development projects, but they already seem to acknowledge this and have the financial resources to staff up. Providing there aren't to many more train smashes such as Exeter and Isle of Wight, and investor confidence isn't completely destroyed, I think they will be one of a small number of platforms that will endure over the long term.
And only 8 weeks away from year ended 2017, not that we will know the results for some time, but still bated breath results, anyone care to guestimate. Purely for fun of course, if we start making wild accusations Paul64 might feel the need to comment. I guesstimate a slight slow down in the rate of growth with only a doubling of profit after tax to c£5M.............
|
|
shimself
Member of DD Central
Posts: 2,561
Likes: 1,170
|
Post by shimself on Oct 2, 2017 7:38:06 GMT
Profits are up 150% to £2.6m The platform itself will not go bust. We might, they won’t. Is us taking the risk, not them. How did FK (and some others) get into trouble then? I'm prettty sure forFK it was limited dealflow that became the real problem combined with squabbling amongts the platforms old and new owners. But actually as an investor the only difference has been that there haven't been any new deals for about a year, existing loans have been running along exactly as before, the platform hasn't changed, the SM still works, and they keep saying that as soon as they get their IFISA they'll have new offerings. This is not an example of a platform rundown procedure in operation
|
|
